Electronic components provider Molex Incorporated (MOLX), Tuesday reported a profit for the second quarter of fiscal year 2010 from a loss last year, benefiting from higher revenues and margins as well as lower operating expenses. Revenues came in ahead of Street expectations, while earnings topped estimates by two cents. The company also provided guidance for its third quarter.
The Lisle, Illinois-based company's net income for the second quarter was $19.29 million or $0.11 per share, compared to a loss of $87.24 million or $0.50 per share in the previous year.
Results for the quarter include restructuring costs and asset impairments of $22.15 million. The prior-year results were impacted by a goodwill impairment of $93.14 million.
On an adjusted basis, net income was $41.44 million or $0.24 per share, compared to $35.60 million or $0.20 per share last year.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.22 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenue for the quarter rose 9.4% to $729.58 million from $666.73 million last year. Analysts expected the company to report revenue of $709.23 million for the quarter.
Martin Slark, Molex's chief executive officer said, "Revenue was well above our prior guidance and we had a 1.07 book-to-bill ratio. Margins improved due to higher revenue, cost containment and the favorable impact of restructuring."
Among Molex's peers, Wallingford, Connecticut-based Amphenol Corp. (APH), previously reported a decline in profit for the fourth quarter, as higher expenses offset a marginal increase in sales. Fourth-quarter net income attributable to the company decreased to $87.64 million or $0.50 per share from $98.73 million or $0.56 per share a year ago. Revenues rose to $758.3 million from $755.3 million in the year-ago quarter.
Another peer, Schaffhausen, Switzerland-based Tyco Electronics Ltd. (TEL) is scheduled to report its first quarter results on January 27. The company had earlier projected adjusted earnings from continuing operations in the range of $0.35 to $0.39 per share. Analysts currently expect the company to report earnings of $0.39 per share on revenues of $2.79 billion.
Gross profit for Molex during the quarter was $212.54 million or 29.1% of revenues, compared to $176.07 million or 28.4% of revenues a year ago.
Total operating expenses declined to $175.74 million from $277.53 million in the previous year. Restructuring costs declined to $25.63 million from $39.78 million last year.
The increase in local currency was 4.6% compared to the prior year. Orders for the quarter were $777.9 million, an increase of 38.4% from the prior year. Backlog was $340.6 million at the end of the quarter.
For the six-month period, net income was $7.69 million or $0.04 per share, compared to a loss of $42.95 million in the same period of the previous year. Net revenue for the period, declined 6.8% to $1.40 billion from $1.50 billion a year ago.
"Looking forward to our third fiscal quarter, we expect to see a smaller than normal seasonal slow down over the Chinese New Year period, returning to normal seasonal patterns thereafter. Longer term, our strong presence in Asia coupled with continued demand for new consumer electronic devices and pent up demand for information technology products should provide us with opportunities for sustained growth," Slark said.
For the third quarter, the company expects earnings in the range of $0.18 to $0.22 per share, assuming an effective tax rate of 30.0%. Analysts currently expect earnings of $0.19 per share for the third quarter.
Third-quarter revenues are expected to range from $715 to $735 million, while analysts expect revenues of $691.38 million.
In addition, the company currently estimates a total pretax charge through the end of fiscal year 2010 of about $300 million, compared to the previous estimate of $280 million. The increase is due to additional non-cash impairments for buildings resulting from continued weakness in the commercial real estate markets and additional specific actions that have been initiated at the end of restructuring program.
The company's third-quarter results are expected to be affected by a pretax restructuring charge of about $10.0 million or $0.04 per share after-tax.
MOLX closed Tuesday's regular trading at $20.90, up 0.08 or 0.38%, on a volume of 1.17 million shares on the Nasdaq. In after hours, the stock further gained 0.15 or 0.72%, trading at $21.05. In the past 52-week period, the stock traded in a range of $9.68 to $22.71, on a 3-month average volume of 1.15 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.